Brad Jacobs, the mastermind behind the success of XPO freight conglomerate, has shifted his focus to a new venture. He recently announced a $1 billion investment in a company called SilverSun Technologies, a publicly traded company on the Nasdaq. This investment is being made through Jacobs Private Equity (JPE), with $900 million coming from JPE and an additional $100 million from other investors, including private equity firm Sequoia Heritage.
The $1 billion investment is aimed at restructuring SilverSun Technologies’ existing business into a standalone operation. The remaining entity will focus on significant acquisitions in an industry that is yet to be announced. The spinoff is expected to be completed in the next two to four months.
Jacobs’ interest in publicly traded companies stems from his preference for public markets over private capital. The acquisition of SilverSun Technologies bears similarities to his strategy with XPO back in 2011, when he acquired Express-1 Expedited Solutions and built it into a successful venture. While the industries may differ, SilverSun’s focus on technology and software solutions for small to medium-sized businesses aligns with Jacobs’ vision.
After the spinoff, Jacobs is set to become the CEO and chairman of the remaining company, which will have no ongoing activities. With a solid platform in place, Jacobs is poised to embark on his next round of investments with the support of a publicly traded entity.
Jacobs is scheduled to speak at the Economic Club of New York in December, where he is expected to provide more details about his plans. Apart from his success in the logistics sector, Jacobs has also founded companies in equipment leasing, waste management, and energy brokerage.
Overall, Jacobs’ investment in SilverSun Technologies represents a strategic move towards expanding his portfolio and leveraging his expertise in building successful businesses.
